Edtech – A Non-Stop Marathon

Edtech: A Non-Stop Marathon


Technology intervention in the education sector is progressing like a non-stop marathon. Technology has not only entered into this area, but it has also altered the entire definition. “Education” word will be soon replaced with Edtech since textbook limits the scope and interactive nature of this system. One of the reasons that are driving Edtech is “US: The Middle Class”.

Let’s dive deep to get the overall picture of EdTech’s sector growth in the Asia Pacific driven by the middle-class population:

  • Global spending on technology by 2025 – USD 250 Billion
  • Investments made every year in EdTech – USD 4 Billion
  • China attracting half of global startup EdTech investment
  • India, USA & China are significant hubs of EdTech global ecosystem

The technology drivers that are pushing this evolving trend of EdTech in India include:

  • Internet Penetration – Improving the reach and lowering the cost of the internet allows a large population to come online and have access to this market
  • Mode of delivery – Dissatisfaction in the current education system will move people towards new delivery mode
  • Bandwidth increase – With increasing internet bandwidth, watching video content online has become easy
  • Population – Rise in middle-class population will push for education demand
  • Digital India – Indian government’s digital India campaign will give a boost to the EdTech sector
  • Disposable income – Rise in disposable income across the country will push Indian EdTech
  • Low cost – Online education provides a low-cost alternative
  • Job search – Growing job seekers will demand industry-specific training

It doesn’t stop here, Edtech is not only limited to provide online content, but it also offers various business models which allow Edtech companies to expand their portfolio, making this business more attractive.

  • Online Test Preparation: Over 75% of the total Edtech funding in the last 5 years went to test preparation. With over 15 mn students in India preparing for competitive exams, this market is a big game.
  • Deep – Tech Courses: Courses for skill development in deeptech is on the rise, and the potential of the sector is visible with the entry of Panasonic launching courses in the deeptech domain.
  • Teacher Partners:  It has become imperative to provide subject-specific trained and professional teachers; Cuemath’s success shows the importance of trained teachers in education.
  • Reskilling and certification: This market has the potential to reach USD 500mn by 2021. Companies like Infosys and TCS created skilling platforms like Lex and Ion to train over 70,000 employees.

The list is exhaustive, and the market is vast, all it needs a good strategy, investor’s interest and dedicated start-ups to take this sector to further heights.

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